Bhubaneswar ( Orissa): As a New Year gift, the Orissa government has decided to implement the recommendations of the 6th Pay commission of the centre government, official sources said.

The hike, which will be effective from January 2006, will cost the state government an additional Rs.2,100 crore (Rs 2.1 billion) annually. While 40 per cent of the arrears will be paid by this month-end, the remaining sum will be paid early next year, about half a million employees of the stste government will be benefitted by this the sources said. .

The government employees who will benefit from the hike will include regular employees, grants in aid employees and pensioners. The highest hike will be around Rs.9,000 and the lowest around Rs.4,000. .

The Orissa government had constituted a fitment committee, headed by the state development commissioner R.N. Bohidar, to study the Sixth Pay Commissionís recommendations and also try to figure out the likely impact on the stateís finances if the recommendations were implemented. .

A meeting of the state cabinet, presided over by Chief Minister Naveen Patnaik Sunday, approved the fitment committee reportís, which was submitted recently, and decided to give the hike as per the recommendations.

On Monday, the Chief Minister or the Finance Minister Prafulla Ghadai will make a statement on the floor of the House in the issue. .

On receiving the DC Committee Report, Cabinet has deliberated it on for nearly two hours here. Sources said there are few additions to the recommendations. However nobody is opening up on the issue, as it is a sensitive one.